In this article, we will take a look at the 10 Best Performing Retail Stocks in 2025.

September saw a modest increase in sales among U.S. retailers and restaurants as resilient customers cut back on their summer spending. In a report that was delayed more than a month due to the government shutdown, the Commerce Department announced on November 25 that sales increased by 0.2% in September compared to the previous month. According to the report, Americans reduced their spending during the September quarter as many households battled the high cost of rent, groceries, and imported products hit by tariffs.

While some economists contended that the strength indicated discretionary spending was still in good form, others pointed out that higher-income households were driving spending while many middle-class and lower-class customers were struggling, resulting in what they called a “K-shaped economy.”

Nevertheless, retail stocks are once again the focus of this year’s U.S. holiday shopping season. For the first time this year, the National Retail Federation (NRF) predicts that holiday sales will surpass $1 trillion.

Customers are gearing up to spend an average of $890.49 per person this Christmas season, according to a recent NRF survey. This expenditure includes meals, holiday décor, gifts for loved ones, and other seasonal items. The report adds that 63% of consumers put off doing the majority of their holiday shopping until Thanksgiving weekend.

Our Methodology

For this list, we made use of stocks screeners to note down retail stocks with significant short interest. From that list, we primarily chose stocks with a year-to-date performance 20% or above. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q3 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

10. Urban Outfitters Inc. (NASDAQ:URBN)

Year-To-Date-Performance as of November 28: 30.31%

Number of Hedge Fund Holders: 41

Urban Outfitters Inc. (NASDAQ:URBN) ranks among the best performing retail stocks in 2025. On November 26, UBS maintained its Neutral rating on Urban Outfitters Inc. (NASDAQ:URBN) while boosting its price target to $80 from $70. UBS also raised its earnings per share projections for Urban Outfitters, citing the company’s “surprisingly strong” quarterly results as the main driver of the update.

Urban Outfitters Inc. (NASDAQ:URBN) reported earnings per share of $1.28 for the third quarter, exceeding analyst expectations of $1.19. Revenue also topped expectations, totaling $1.53 billion compared to the expected $1.48 billion. Alongside this performance, the company’s Anthropologie and Free People brands saw strong single-digit growth, while the Urban Outfitters brand saw double-digit boosts.

UBS’ base case projection forecasts that Urban Outfitters’ five-year earnings per share CAGR will hover around 8%, while its upside case anticipates a CAGR in the low teens.

Urban Outfitters, Inc. (NASDAQ:URBN) is a Pennsylvania-based fashion business that operates through three segments: Retail, Wholesale, and Subscription. The company boasts a portfolio of global consumer brands, primarily including Anthropologie, Free People, FP Movement, Urban Outfitters, and Nuuly.

9. Macy’s Inc. (NYSE:M)

Year-To-Date-Performance as of November 28: 35.02%

Number of Hedge Fund Holders: 42

Macy’s Inc. (NYSE:M) ranks among the best performing retail stocks in 2025. On November 28, Telsey Advisory Group boosted its price target on Macy’s Inc. (NYSE:M) to $22 from $17 while retaining a Market Perform rating on the company’s shares. The boost comes after Macy’s robust second-quarter earnings beat, where all three of the company’s flagship brands generated positive owned comparable sales.

Macy’s Inc. (NYSE:M)’s second-quarter net sales of $4.8 billion topped guidance, while its adjusted earnings per share came in at $0.41, also exceeding expectations. Comparable sales climbed across all banners, marking the strongest rise in 12 quarters, with Bluemercury earning its 18th straight quarter of growth. Meanwhile, the company continues to pursue its Bold New Chapter strategy, which includes eliminating 150 struggling Macy’s locations, boosting its luxury presence by 20%, and targeting $600-750 million in asset monetization over the upcoming three years.

Given performance variations among banners, Telsey sees these activities as a logical repositioning, though it points out that there is still no short-term sight for increase in sales and profitability.

Macy’s Inc. (NYSE:M) is an omnichannel retail store that manages three brands: Macy’s, Bloomingdale’s, and Bluemercury. These brands sell a variety of merchandise, including accessories, apparel, consumer goods, home furnishings, and more.

8. Wayfair Inc. (NYSE:W)

Year-To-Date-Performance as of November 28: 140.56%

Number of Hedge Fund Holders: 50

Wayfair Inc. (NYSE:W) ranks among the best performing retail stocks in 2025. Truist Securities reiterated its Buy rating and $120 price target for Wayfair Inc. (NYSE:W) after meeting with company management in New York City on November 21. Analyst Youssef Squali expressed “incrementally positive” views on the company’s forecast, citing Wayfair Inc. (NYSE:W)’s ability to continue market share gains and boost revenue growth in FY2026 “almost irrespective of market dynamics.”

The updates came as Wayfair Inc. (NYSE:W) reported a double-beat on headline estimates, with adjusted EPS of $0.70 rising 220% year-over-year and revenues of $3.1 billion up 8.1%. The company’s orders delivered also increased by more than 5% year-over-year, with new orders having now grown in the mid-single digits for two consecutive periods.

Squali added that Wayfair Inc. (NYSE:W)’s management is committed to preserving and growing margins of contribution and adjusted EBITDA while providing meaningful advantages from its re-platforming efforts, which include increased product velocity.

Wayfair Inc. (NYSE:W) is a global e-commerce company that sells furniture, décor, housewares, and home renovation products under several names, including Wayfair, AllModern, Birch Lane, and Perigold.

7. Dollar General Corporation (NYSE:DG)

Year-To-Date-Performance as of November 28: 44.77%

Number of Hedge Fund Holders: 54

Dollar General Corporation (NYSE:DG) ranks among the best performing retail stocks in 2025. Guggenheim reaffirmed its $125 price target and Buy rating on Dollar General Corporation (NYSE:DG) on November 28 in anticipation of the retailer’s impending third-quarter earnings announcement. As Dollar General prepares to release its results on December 4, Guggenheim states that it expects “solid, potentially above-consensus” third-quarter earnings and a tightened yet elevated full-year guidance.

During its Q2 earnings call, Dollar General Corporation (NYSE:DG) upped its 2025 forecast, predicting same-store sales growth of 2.1% to 2.6% and net sales growth of 4.3% to 4.8%. The company also estimated that EPS will fall between $5.80 and $6.30.

Guggenheim also has cautious expectations for Dollar General’s 2026 Street results, pointing out that even with a flat EBIT margin, the company should profit from decreasing LIFO and interest costs in addition to a smaller number of shares.

Dollar General Corporation (NYSE:DG) operates a chain of neighborhood retail stores that provide affordable, everyday essentials, including food, cleaning supplies, personal care, and health items, to communities, particularly in rural and smaller towns.

6. Ulta Beauty, Inc. (NASDAQ:ULTA)

Year-To-Date-Performance as of November 28: 25.55%

Number of Hedge Fund Holders: 56

Ulta Beauty, Inc. (NASDAQ:ULTA) ranks among the best performing retail stocks in 2025. On November 21, UBS reaffirmed its Buy rating for Ulta Beauty, Inc. (NASDAQ:ULTA) with a $680 price target, citing solid third-quarter results and consistent beauty category demand. The firm believes Ulta Beauty, Inc. (NASDAQ:ULTA) is well-positioned to generate “a healthy beat in 3Q” while gaining from an increasingly rational competitive environment, especially in terms of rival store expansions.

UBS reports that decreased rivalry from Sephora openings could give a 100-200 basis point boost to comparable sales in 2026, while Ulta’s “re-energized leadership team” applies strategic actions that are contributing to share gains.

Moreover, Ulta Beauty, Inc. (NASDAQ:ULTA) announced plans to launch its first Middle Eastern branch in Kuwait on November 7, marking a key milestone in the company’s regional expansion. In collaboration with Alshaya Group, the store will carry over 300 beauty and wellness products, some of which will be making their Middle Eastern debut.

Ulta Beauty, Inc. (NASDAQ:ULTA) is a speciality beauty retailer in the U.S. that operates more than 1,445 retail stores across 50 states. The company provides a variety of skincare, hair care, cosmetics, perfumes, and salon services.

5. eBay Inc. (NASDAQ:EBAY)

Year-To-Date-Performance as of November 28: 32.91%

Number of Hedge Fund Holders: 56

eBay Inc. (NASDAQ:EBAY) ranks among the best performing retail stocks in 2025. On November 24, BNP Paribas Exane began coverage of eBay Inc. (NASDAQ:EBAY) with a Neutral rating and a $90 price target. The firm acknowledged eBay as a “meaningful player in global e-commerce” but cautioned about the company’s future expansion.

eBay’s Gross Merchandise Volume (GMV) growth accelerated significantly, exceeding analyst estimates with a 10% increase in the third quarter. The company’s non-GAAP operating margin somewhat improved in tandem with this growth, which was notably robust in the U.S. market.

Before taking a more optimistic approach to the stock, BNP Paribas Exane stated that it would seek “higher and more durable top-line growth” from eBay. eBay’s “strong YTD performance” was cited by the firm as a factor limiting potential upside, implying that the stock had already realized a significant amount of its short-term value.

eBay Inc. (NASDAQ:EBAY) is a major e-commerce player that allows individuals and small business owners to operate their businesses from home. The company allows business owners to operate through the marketplace and connect with buyers and sellers globally.

4. Tapestry Inc. (NYSE:TPR)

Year-To-Date-Performance as of November 28: 66.51%

Number of Hedge Fund Holders: 60

Tapestry Inc. (NYSE:TPR) ranks among the best performing retail stocks in 2025. TD Cowen reaffirmed its Buy rating and $120 price target for Tapestry Inc. (NYSE:TPR) on November 19 after visiting the company’s archive and workshop facilities and meeting with the CEO and CFO. According to TD Cowen, the company has evolved from 35% to 65% evergreen products, which enables more effective inventory management while promoting broader concepts.

The rating came after Tapestry’s record first-quarter fiscal 2026 results, which outperformed analyst forecasts. Tapestry Inc. (NYSE:TPR) generated $1.7 billion in revenue and earned $1.38 per share, indicating 16% sales increase and 35% EPS growth year-over-year. Coach, the company’s flagship brand, drove its overall rise with a 21% revenue increase, while Kate Spade continued to suffer with a 9% drop.

TD Cowen acknowledged that Kate Spade is still a “work-in-progress” that requires patience, though it voiced confidence in the “One Coach” strategy provided it is implemented well across collection and outlet product lines.

Tapestry Inc. (NYSE:TPR) provides luxury accessories and branded lifestyle products in North America, Greater China, the rest of Asia, and internationally. The company operates in three segments: Coach, Kate Spade, and Stuart Weitzman.

3. The TJX Companies, Inc. (NYSE:TJX)

Year-To-Date-Performance as of November 28: 25.40%

Number of Hedge Fund Holders: 69

The TJX Companies, Inc. (NYSE:TJX) ranks among the best performing retail stocks in 2025. Bernstein SocGen Group boosted its price target for The TJX Companies, Inc. (NYSE:TJX) to $155 from $152 on November 20, while maintaining an Outperform rating on the the company’s shares. Citing TJX’s impressive quarterly results, the firm noted that its off-price business strategy continues to draw in customers and increase basket size through bargains and savvy purchases across all price points.

The company’s Q3 performance was illustrated by a 5% improvement in consolidated comparable sales. TJX’s pre-tax profit margin also grew by 40 basis points year-over-year to 12.7%. This expansion was driven by high demand in apparel and home sectors, along with the company’s strategic advertising strategies targeting varied consumer segments.

Given that The TJX Companies, Inc. (NYSE:TJX) is “one of the strongest consistent performers in retail,” Bernstein expressed confidence in the company’s long-term prospects, noting that further upside is expected to come from EPS outperformance.

The TJX Companies, Inc. (NYSE:TJX) is a well-known off-price clothing and home fashion retailer. Its store brands include the likes of T.J. Maxx, Marshalls, and HomeGoods, as well as international names such as T.K. Maxx and Winners.

2. Sea Limited (NYSE:SE)

Year-To-Date-Performance as of November 28: 32.55%

Number of Hedge Fund Holders: 102

Sea Limited (NYSE:SE) ranks among the best performing retail stocks in 2025. On November 17, Phillip Securities upgraded ​Sea Limited (NYSE:SE) from Neutral to Buy, with a $170 price target. The bump up reflects recent share price rises and reflects enhanced growth prospects across each of Sea’s business categories.

In order to reflect what it called “elevated investment” by the company, Phillip Securities also raised its estimates for selling and marketing expenses by 5% for both FY25 and FY26.

Notably, Sea’s third-quarter Gross Merchandise Value increased 28% year-over-year, prompting management to revise its full-year outlook to more than 25% growth from the previous projection of more than 20%. Garena, the company’s gaming branch, reported a 51% rise in bookings year-over-year, owing to the Squid Game and Naruto Shippuden Chapter 2 promotions.

Management also stated that quarterly margin shifts could be due to seasonality or investment initiatives, though a year-over-year margin increase is present, with a goal of 2-3% steady state margins.

​Sea Limited (NYSE:SE) is a leading internet and technology company based in Singapore. It operates through three main business segments, including Digital Entertainment, E-commerce, and Digital Financial Services.

1. Walmart Inc. (NYSE:WMT)

Year-To-Date-Performance as of November 28: 22.79%

Number of Hedge Fund Holders: 104

Walmart Inc. (NYSE:WMT) ranks among the best performing retail stocks in 2025. Truist Securities boosted its price target on Walmart Inc. (NYSE:WMT) to $119 from $109 on November 21, while retaining a Buy rating on the retail giant’s shares. The rise follows Walmart’s solid third-quarter results, which included U.S. comparable sales growth of 4.5%, Sam’s Club growth of 3.8%, and overseas sales growth of 11% on a constant currency basis.

The company’s grocery comparable sales rose in the low single digits, well below the mid-single-digit estimate, with the decline mostly related to lapping last year’s egg inflation. Walmart Inc. (NYSE:WMT) also addressed worries about artificial intelligence investments, noting that it can use hyperscalers’ capital expenditures rather than launching its own AI investment cycle.

In light of the company’s results, Truist emphasized Walmart’s robust margins and substantial growth in other income streams, especially advertising, which rose 33% in the U.S.

Walmart Inc. (NYSE:WMT) ranks as the world’s largest brick-and-mortar retailer, with over 100,000 stores. The company’s sectors include Walmart US, Walmart International, and Sam’s Club, which provide a wide range of products, including clothes, electronics, and home furnishings.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.